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Major update on mass Boots closure plans as 47 more stores to shut for good

30 June 2024 , 15:07
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Watch our video, which explains why retailers are shutting shops
Watch our video, which explains why retailers are shutting shops

BOOTS has issued a major update on its store closure plans after previously announcing that 300 chemists would shut for good.

The health and beauty chain announced last year that it would close hundreds of branches as part of plans to reduce store numbers.

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Boots has plans to close a further 47 stores in the coming months

In a fresh update, Boots UK told The Sun that 253 stores have now shut as part of these plans.

However, it means that a further 47 shops are set to close in the coming months.

While it wouldn't disclose a full list of store closures coming for the year ahead, it said that most will take place when an affected store's lease expires.

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It comes after Boots revealed a jump in sales for the latest quarter, as its parent firm cut profit forecasts and announced US store closures.

Boots UK revealed higher sales across its pharmacy and retail businesses over the quarter to the end of May.

However, total sales growth slowed to 1.6% as it was impacted by store closures over the past year.

Over the past year, Boots has shut around 253 shops to take its store estate from around 2,200 down to 1,900 sites.

At the time it said locations affected are those where there is another store nearby.

On Thursday, parent company Walgreens Boots Alliance (WBA) said it plans to shut more of its underperforming US shops following a strategic review.

WBA also cuts its earning per share guidance for the financial year to August, amid a “challenging US retail environment”.

Overall group sales were 2.6% higher at 36.4 billion dollars (£28.8 billion) for the quarter to May, as its US business saw stronger pharmacy sales offset a retail slump.

In the UK, comparable retail sales grew by 6% year-on-year, with in-store sales higher on the back of stronger footfall in its travel, beauty and flagship shops.

It highlighted that airport stores performed particularly well following recent refurbishments.

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Meanwhile, digital sales grew by 13.8% for the period, as it benefited from investment into its Boots app, providing shoppers with personal offers.

Boots also reported stronger sales growth in its pharmacy arm, which reported a 5.8% rise amid increased take up for its healthcare services.

Travel and vaccination services saw high demand ahead of the summer holiday, the company said.

Sebastian James, Boots UK and Republic of Ireland chief executive officer, said: "This is another set of consistently strong results for Boots.

"I am pleased to see our positive momentum continue across the whole business, with both retail and healthcare increasing sales and a 13th consecutive quarter of market share growth.

"We continue to focus on making exciting new brands and services accessible whilst focusing on value and rewarding loyalty.

"We are committed to delivering a fantastic experience for customers however they shop with us."

MORE ON BOOTS CLOSURES

Since 2019, Boots has embarked on a major company restructure dubbed the Boots Transformation Plan.

At the time of its launch in 2019, the brand earmarked 200 stores for closure.

The closures took place over an eighteen-month period.

Many of the closures were because they were loss-making and two-thirds of them were within walking distance of each other, the chain said.

In 2020, Boots announced 48 opticians were closing with the loss of 4,000 jobs.

Last July, Boots announced further plans to shut 300 more stores.

The move is aimed to reduce the chain's store portfolio from around 2,200 to just 1,900.

So far, 253 of these store closures have taken place and a further 47 shops will close later this year.

The pharmacy chain employs over 52,000 team members, and it has said that these closures will not lead to any redundancies.

Boots' parent, WBA's quarterly financial report, said earlier this week that it "plans to reduce its presence by up to 650 Boots stores".

Since the launch of the Boots Transformation Plan in 2019, 581 Boots stores have closed for good.

However, it's not all doom and gloom on the high street.

Several major retailers have plans to increase their store counts.

James Flanders

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